Poll says Michigan motorists object to auto coverage limits

As lawmakers propose offering insured motorists the option of forgoing unlimited lifetime medical coverage, a survey commissioned by medical providers found two-thirds of respondents preferred the blanket care the current system provides.

Personal injury protection in auto policies now cover the first $500,000 in medical bills stemming from an auto accident. After that, the Michigan Catastrophic Claims Association, an industry-managed reinsurance fund, picks up the rest, no matter how high the cost of medical care or how long the duration.

The MCCA assessment, applied to every vehicle insured in Michigan, rose $1.91 to $145 effective July 1. While the rate fluctuates, that’s the highest in the fund’s 33-year history.

Senate Bill 293, sponsored by Sen. Joe Hune, R-Hamburg, would allow motorists to buy lesser amounts of coverage with option limits ranging from $50,000 to $400,000. Those policies would carry a much smaller MCCA assessment. For consumers willing to pay more, unlimited coverage would still be available. Hune chairs the Senate Insurance Committee.

Two-thirds of those surveyed were opposed to any change in the law, according to a poll released today by a group of providers and patients - the Coalition Protecting Auto No-Fault. The group contends that allowing coverage options would “gut” unlimited medical care, which is unique in the nation.

In the July survey of 600 voters by Chicago-based Glengariff Group, 62 percent opposed limits on the amount of care an accident victim would receive on their policies. About 27 percent support limits and 11 percent were unsure.

But respondents supported the idea of giving consumers choice, 48 percent to 42 percent. Support waned when asked about the alternatives when that capped coverage expires - high out-of-pocket costs, more litigation, a greater burden on government programs like Medicaid.

"Voters are very skeptical about the auto insurance industry’s plans to cut injury benefits, and rightly so,” said John Cornack, president of CPAN and CEO of Ann Arbor-based Eisenhower Rehabilitation Center.

“Accident victims in our state can get the care they need without bankrupting their families and turning to welfare," Cornack said. "It’s not worth throwing away the best auto insurance system in the nation just to save a couple bucks.”

Insurers back the bill because they say it gives consumers choices as to what kinds of coverage they feel they need or can afford. They say, for example, it makes little sense to require seniors covered by Medicare to purchase unlimited care through their auto policies.

While the bill has a Republican sponsor, it has received interest from urban Democrats who see it as one way to curb auto insurance costs in their communities. Companion bills would set a fee schedule for accident treatment and require prompt billing from provider to insurers.